Pacific Gas & Electric (NYSE:PCG) Shares Gap Down Following Analyst Downgrade

Key Points

• Bank of America downgraded PG&E to Neutral from Buy and cut its price target to $13 from $24, sending shares down from a $14.06 close to a $13.56 open and later to about $12.67.
• Analyst sentiment has weakened, with PG&E receiving five Buy and seven Hold ratings; the consensus rating is Hold with an average price target of $19.73.
• PG&E plans to invest approximately $11.4 billion in California in 2027 while deferring about $2 billion of lower-priority work, as it conducts a strategic review focused on financing, customer costs and future wildfire-liability risks.

Pacific Gas & Electric Co. (NYSE:PCG - Get Free Report)'s stock price gapped down before the market opened on Wednesday after Bank of America downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $14.06, but opened at $13.56. Bank of America now has a $13.00 price target on the stock, down from their previous price target of $24.00. Pacific Gas & Electric shares last traded at $12.6680, with a volume of 18,017,760 shares changing hands.

Other analysts have also issued reports about the stock. Morgan Stanley reduced their price objective on shares of Pacific Gas & Electric from $23.00 to $22.00 and set an "equal weight" rating for the company in a research note on Friday, August 21st. Wall Street Zen downgraded shares of Pacific Gas & Electric from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. BMO Capital Markets reiterated a "market perform" rating and set a $21.00 price target (down from $28.00) on shares of Pacific Gas & Electric in a report on Monday. Wells Fargo & Company downgraded shares of Pacific Gas & Electric from an "overweight" rating to a "buy" rating in a research report on Monday. Finally, Truist Financial decreased their price objective on shares of Pacific Gas & Electric from $23.00 to $21.00 and set a "buy" rating for the company in a report on Tuesday, August 4th. Five investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $19.73.

Insider Transactions at Pacific Gas & Electric

In other news, EVP Marlene Santos sold 158,250 shares of Pacific Gas & Electric stock in a transaction on Wednesday, July 22nd. The shares were sold at an average price of $18.00, for a total transaction of $2,848,500.00. Following the transaction, the executive vice president owned 230,885 shares in the company, valued at $4,155,930. This trade represents a 40.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.22% of the company's stock.

Key Stories Impacting Pacific Gas & Electric

Here are the key news stories impacting Pacific Gas & Electric this week:

• Positive Sentiment: PG&E plans to invest approximately $11.4 billion in California during 2027, supporting grid safety, reliability and capacity to meet rising electricity demand. The company also plans to defer about $2 billion of lower-priority work, which should reduce near-term borrowing needs and limit exposure to higher financing costs. PG&E to invest $11.4 billion in California in 2027 as part of strategic review
• Positive Sentiment: The company launched a strategic review of its business organization and financing. Management said the review is intended to attract affordable capital while keeping customer costs under control, raising the possibility of improved funding terms or a structure that better supports long-term investment. PG&E Launches Strategic Review
• Positive Sentiment: California lawmakers reportedly rejected a wildfire bill that lacked meaningful liability protection for utilities. That outcome removed a provision investors viewed as unfavorable and helped PG&E and other California utilities recover from their sharp selloff. PG&E Stock, Edison International Rise as California Lawmakers Kill Wildfire Bill
• Neutral Sentiment: Wells Fargo reiterated its Equal Weight rating, signaling limited conviction that the current valuation offers significant upside while the strategic review and wildfire policy outlook develop. Wells Fargo Reiterates Equal Weight Rating
• Negative Sentiment: PG&E recently reached a new 52-week low after an approximately 18% one-day plunge. Analysts continue to warn that the failure to establish a liability cap leaves the company exposed to potentially significant costs from future wildfires. Bank of America also downgraded the stock to Neutral and cut its price target to $13. Why PG&E Stock Just Crashed

Institutional Investors Weigh In On Pacific Gas & Electric

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Gallagher Fiduciary Advisors LLC bought a new position in shares of Pacific Gas & Electric in the second quarter worth approximately $300,895,000. Legal & General Group Plc bought a new stake in shares of Pacific Gas & Electric during the 2nd quarter valued at $398,915,000. Canada Pension Plan Investment Board bought a new stake in shares of Pacific Gas & Electric during the 2nd quarter valued at $320,820,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Pacific Gas & Electric during the 2nd quarter valued at $314,855,000. Finally, Man Group plc purchased a new position in shares of Pacific Gas & Electric during the 2nd quarter valued at $188,513,000. Institutional investors own 78.56% of the company's stock.

Pacific Gas & Electric Price Performance

The company has a debt-to-equity ratio of 1.90, a quick ratio of 1.15 and a current ratio of 1.22. The company has a market cap of $34.23 billion, a P/E ratio of 9.26, a P/E/G ratio of 0.86 and a beta of 0.24. The firm's fifty day moving average is $17.28 and its two-hundred day moving average is $17.30.

Pacific Gas & Electric (NYSE:PCG - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The utilities provider reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.04. The business had revenue of $5.90 billion for the quarter, compared to analysts' expectations of $6.20 billion. Pacific Gas & Electric had a return on equity of 12.48% and a net margin of 12.25%.The business's quarterly revenue was up .1% on a year-over-year basis. During the same period last year, the firm earned $0.31 earnings per share. Pacific Gas & Electric has set its FY 2026 guidance at 1.640-1.660 EPS. As a group, analysts anticipate that Pacific Gas & Electric Co. will post 1.65 earnings per share for the current fiscal year.

Pacific Gas & Electric Company Profile

Pacific Gas & Electric NYSE: PCG is an investor-owned utility holding company whose principal operating subsidiary, Pacific Gas and Electric Company, provides electricity and natural gas service in northern and central California. The company's core activities include the generation, procurement, transmission and distribution of electric power, as well as the transmission and distribution of natural gas. PG&E serves a broad mix of residential, commercial, and industrial customers across urban and rural communities within its California service territory.

PG&E's operations encompass utility infrastructure planning and construction, grid operations, customer service and energy procurement.

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